Cheap deposits and increased borrowing for home loans has seen
The mortgage firm's net profit grew 34 per cent to Sh995 million in the year to December on increased borrowing that saw its loan book rise by Sh5 billion to Sh35.2 billion.
Deposit costs also helped lift HF profit, given the saving expenses dropped by Sh698 million that is higher than the additional profit of Sh121 million.
The firm maintained the trend of raising dividends by double-digits after paying Sh1.40 in 2012 up from Sh1.20 in 2011 and Sh0.70 in 2010—a major boost to its key shareholders including Britam and
The borrowing was boosted by sale of homes built by its subsidiary,
"We are expecting our balance sheet to grow by 30 per cent this year, the bank is very optimistic," said
He added that the mortgage firm will open five new branches and boost lending on the back of its recently approved Sh20 billion corporate bond.
READ: HF revives construction arm with estate plan
Rapid urbanisation, population growth and expansion of the middle class remain the main drivers of
Property market analysts say the rising rent and home prices that has gripped
Its share price at the Nairobi Securities Exchange has gained 31 per cent over the past six months to the current Sh33.25.
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